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IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments

IFRIC 2 provides guidance on classifying members’ shares in co-operative entities as financial liabilities or equity.

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Registration is required to access the free version of the Issued Standards. This version does not include additional documents that accompany the full standards (such as illustrative examples, implementation guidance and basis for conclusions).


IFRIC 2 provides guidance in applying the requirements of IAS 32 in terms of classifying financial instruments as liabilities or equity to co-operatives and similar entities.

Shares for which the member has the right to request redemption are normally liabilities, unless:

  • the entity has an unconditional right to refuse redemption;
  • local law, regulation or the entity’s governing charter can unconditionally prohibit redemption.

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